Glossary of Terms

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Backup Servicer

An organization skilled in the servicing of financial transactions who agrees to assume the servicing obligations from an existing servicer if certain events of default occur with regard to the existing servicer. The Backup Servicer may maintain varying levels of readiness, commonly referred to as cold, warm or hot. While the role of a Backup Servicer varies from one transaction to another, Backup Servicers routinely receive, review and archive monthly or other periodic portfolio data files from the existing servicer and verify or reconcile monthly servicer reports.

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